US wheat futures dropped 1.7 percent on Monday as traders locked in profits from the market's rally last week. Plentiful global supplies and rising competition on the export market weighed on wheat too. Brazil, traditionally one of the world's largest wheat importers, has exported several shipments of the grain recently as a large domestic crop and a government subsidy make the exports competitive abroad, according to data from ports.
Easing concerns about damage to the dormant crop in key production areas of the Black Sea region added pressure. The benchmark Chicago Board of Trade March soft red winter wheat contract dropped below its 20-day moving average.